The July company updates continue.
One today is from established gold producer Ramelius Resources (ASX:RMS). The company’s June quarter production is in the books now and helped RMS hit its full-year guidance.
Management at RMS told the market today:
“For the sixth consecutive year Ramelius has achieved production guidance, producing 192,182 ounces, within the guidance range of 185,000–205,000 ounces. Gold production for the quarter increased by 40% compared to the prior quarter with 53,466 ounces produced.”
RMS reported underlying free cash flow of $138.3 million. Cash and gold balance is at $649.6 million.
Another interesting thing to note with RMS is it still has 44% of its $250 million buyback to go.
Plus, it was only on 19 June that RMS announced the sale of non-core asset Edna May for $210 million in cash and $90 million in shares of the acquiring firm.
It’s a solid update for RMS shareholders.
That said, the RMS share price is down 28% in 2026:
This has little to do with anything specific to the company and more with the general sell-off in gold shares after the big bull run over 2024 and 2025.
The most recent estimate for RMS is that its price-to-earnings ratio has now fallen back to 10 for the 2027 financial year.
That looks relatively modest considering the strength of the business and the gold price currently.
That said, there are no guarantees that the gold price will stay this profitable or RMS can sustain its excellent track record of production.
There seems to have been some form of rotation out of the gold sector in the last six months from the Australian fund management sector.
It’s likely that they were booking the excellent capital growth and using the released funds to acquire industries that had fallen out of market favour.
Recent reporting from gold companies shows that the gold sector remains highly profitable and is returning cash to shareholders via dividends and buybacks.
That should generate support from the investing community as long as it continues.
Write to Callum Newman at Mining.com.au
Images: Market Index & Ramelius Resources
